Generating Passive Income on a Budget
Everyone has a dream of generating money without lifting a finger. But wouldn't want to have the risk of losing your capital.
Thankfully in the small sunny island of Singapore, there are myriads of way to generate some passive income without the need to worry about losing your capital.
I started on this journey a couple months back to prepare for my break year in New Zealand which is happening in 2 months time.
Here are 2 ways to passive income on a shoestring budget! FYI, these 2 ways will not make you a millionaire, but give you some additional cash. Remember: "Dollar Saved, Dollar Earned"
1. CIMB FastSaver Account (Hassle-Free Passive Income)
For those who are looking to have passive income. What is exactly the FastSaver account?
FastSaver Account is a "High" Interest savings account. The only requirement that you will need to qualify for the interest is S$1,000 deposit. That's it!
With just S$1,000 deposit, you will qualify for 1% Interest P.A
My favorite part of this, is that it compounds on a monthly basis!
Here's some calculation to help you see the effect of compounding interest.
The max cap for this Savings Account is at S$50,000, after which, the interest will be 0.8% P.A for S$50,001.
You must be thinking, this is bullsh*t! S$10.05 a year? You got to be mad.
But hold your horses, this account here is to upkeep your War Chest, at least your money is growing bit by bit rather than have an interest rate of 0.05% from any other banks in Singapore.
For illustration purpose, here's a table for S$20,000:
A cool S$200, per year.
With literally no CIMB ATM, this means that my money is safe and will continue growing!
TLDR for CIMB: Hassle Free. Monthly Paid Interest. S$1,000 to qualify for 1% interest.
2. StashAway Robo Advisor
If you haven't heard of StashAway, it's a Robo-Trader. It helps layman(like me), to buy US Equities, Commodities and Japanese Equities.
What I like about StashAway is the ability to increase your invested sum or withdraw your sum anytime that you like. For me, I started in Mid-April with a S$200 investment, of which, I increased to S$700 in total holdings.
This was a trial & error for me at that stage as I wanted to see how far I can push my money to work for me.
For a S$700 investment, I got almost 0.8-1% back per month. Will this make me a millionaire? Nope.
But this is one way for small retail investors like you and I to start investing.
However, StashAway isn't a guaranteed way to earn passive income. But the beauty of it is that you can customize a plan that suits your financial situation.
You can either do Lump Sum Deposit or Monthly Deposits. You can plan how much risk you can accommodate for investments as well.
Best part, you are able to pick if you want to re-optimise your portfolio. This will enable to Robo-Advisor to use your profits to allocate back into the portfolio that you already have, increasing the holdings that you have!
Take note that there's a 2% Management Fee P.A. You can click here to sign up with my referral link, which will give you 6 months of no fees for investments up to S$10,000!
TLDR for StashAway: Robo-Advisor invest for you. Comes with Risks as you are dealing with markets & equities. 2% P.A Management Fees applies.
I have tested these methods and so far it's working well for me.
Disclaimer: I'm not a financial adviser nor qualified to give financial advice. I'm sharing my experience with these platforms that I have been using. In every financial investment that you take up, always Do Your Own Research (DYOR) and never invest more than you can lose.
Thankfully in the small sunny island of Singapore, there are myriads of way to generate some passive income without the need to worry about losing your capital.
I started on this journey a couple months back to prepare for my break year in New Zealand which is happening in 2 months time.
Here are 2 ways to passive income on a shoestring budget! FYI, these 2 ways will not make you a millionaire, but give you some additional cash. Remember: "Dollar Saved, Dollar Earned"
1. CIMB FastSaver Account (Hassle-Free Passive Income)
For those who are looking to have passive income. What is exactly the FastSaver account?
FastSaver Account is a "High" Interest savings account. The only requirement that you will need to qualify for the interest is S$1,000 deposit. That's it!
With just S$1,000 deposit, you will qualify for 1% Interest P.A
Here's some calculation to help you see the effect of compounding interest.
 |
| Compounding Interest based on S$1,000 intial deposit @ 1% P.A |
You must be thinking, this is bullsh*t! S$10.05 a year? You got to be mad.
But hold your horses, this account here is to upkeep your War Chest, at least your money is growing bit by bit rather than have an interest rate of 0.05% from any other banks in Singapore.
For illustration purpose, here's a table for S$20,000:
 |
| Compounding Interest based on S$20,000 intial deposit @ 1% P.A |
With literally no CIMB ATM, this means that my money is safe and will continue growing!
TLDR for CIMB: Hassle Free. Monthly Paid Interest. S$1,000 to qualify for 1% interest.
2. StashAway Robo Advisor
If you haven't heard of StashAway, it's a Robo-Trader. It helps layman(like me), to buy US Equities, Commodities and Japanese Equities.
 |
| Stashaway Portfolio Management |
This was a trial & error for me at that stage as I wanted to see how far I can push my money to work for me.
 |
| Stastaway performance |
My performance since April! All these graphs looks so good and dandy. Anyone can draw them. But check out my withdrawal!
 |
| Stashaway Withdrawals |
For a S$700 investment, I got almost 0.8-1% back per month. Will this make me a millionaire? Nope.
But this is one way for small retail investors like you and I to start investing.
However, StashAway isn't a guaranteed way to earn passive income. But the beauty of it is that you can customize a plan that suits your financial situation.
You can either do Lump Sum Deposit or Monthly Deposits. You can plan how much risk you can accommodate for investments as well.
Best part, you are able to pick if you want to re-optimise your portfolio. This will enable to Robo-Advisor to use your profits to allocate back into the portfolio that you already have, increasing the holdings that you have!
Take note that there's a 2% Management Fee P.A. You can click here to sign up with my referral link, which will give you 6 months of no fees for investments up to S$10,000!
TLDR for StashAway: Robo-Advisor invest for you. Comes with Risks as you are dealing with markets & equities. 2% P.A Management Fees applies.
I have tested these methods and so far it's working well for me.
Disclaimer: I'm not a financial adviser nor qualified to give financial advice. I'm sharing my experience with these platforms that I have been using. In every financial investment that you take up, always Do Your Own Research (DYOR) and never invest more than you can lose.
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